Americans are starting to smarten up about credit cards. Irresponsible spending on credit has caused a lot of trouble for too many people, and in light of the new credit card reform bill, Consumer Reports attempts to send a point home in its July issue.
It presents this scenario: You charge a $1,000 TV to a credit card with a 13 percent interest rate, and make only minimum payments of 2 percent each month. Can you guess how long it would take to pay off the TV?
Guess How Long It Would Take to Pay Off This TV?
How long would it take to pay off a $1,000 TV charged to a card with a 13 percent interest rate, while making only monthly minimum payments of 2 percent?